German carmaker Volkswagen has asked its Indian arm to send proposals under which Maruti models could be sold under the Volkswagen brand, according to a report. The company would also look at sourcing Maruti's engines, components, and aggregates for Volkswagen's models in India.

According to the proposal, Volkswagen may sell Maruti's Ritz-based car in India under its brand. The Maruti's new WagonR and Ritz models are being considered for Skoda and Volkswagen brands.

NDTV quotes unnamed sources as saying that pricing of the Volkswagen models would stay 5-7 per cent higher than comparable Maruti models and the Volkswagen models cars to be assembled at its plant in Chakan. It adds that Volkswagen will use Maruti K series and DDIS engines for some of its models in India.

Under the proposal, Skoda, which is owned by Volkswagen, may use Maruti's new WagonR platform for its budget car model.

But both the carmakers have to iron out some of the issues before a wide-ranging cooperation takes place: Maruti supplies A-Star to Nissan in Europe where is sold as Pixo, and Maruti's diesel engines are licensed from Fiat. The Ritz model is also sold as Opel Agila in Europe.